California County's Only Hospital Clears Hurdle, Still Needs Millions to Reopen

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A Northern California hospital, Glenn Medical Center, has received a crucial reprieve from Congress, regaining its 'critical access' designation. However, this lifeline doesn't automatically translate to reopened doors and patient care, as the hospital still faces a daunting $40 million to $50 million funding gap to resume operations.

Why it matters

Glenn Medical Center's closure left a county of 28,000 people without a local emergency room, highlighting the broader crisis facing rural healthcare facilities across the country. Factors like rising labor costs, low reimbursement rates, and challenges attracting healthcare professionals have contributed to the financial instability of many rural hospitals.

The details

Glenn Medical Center's troubles stemmed from a technicality: its distance from another hospital. Critical access hospitals must be at least 35 miles from the nearest facility, but a review determined Glenn Medical was only 32 miles from a hospital in Colusa County, triggering the loss of its designation and, subsequently, its financial viability. The recently passed federal law waives the distance requirement for hospitals that previously qualified for the designation, restoring Glenn Medical's eligibility for full Medicare reimbursement. However, the hospital still needs substantial capital to cover operational expenses for a year before reimbursements begin.

• Glenn Medical Center closed its doors last fall.
• The recently passed federal law waives the distance requirement for hospitals that previously qualified for the designation as of January 1, 2024, and received notice of noncompliance before January 1, 2026.

What’s next

A new California bill, Assembly Bill 1923, proposes a $300 million fund for distressed hospitals, and American Advanced Management hopes to secure funding through this program to help reopen Glenn Medical Center.